Unit 2 Test

Front

A personal net worth statement shows a person’s cash inflows and cash outflows for a period of time.

Back

False

Front

The first step of the decision-making process is

Back

Define the need

Front

A goal you expect to achieve by next year would be classified as a short-term goal.

Back

True

Front

The amount of money a person has to spend after needs are met is called

Back

disposable income

Front

Is your NET WORTH measured by using the personal cash flow statement?

Back

False

Front

Financial goals should be set before personal goals, because your personal goals will be dependent on them.

Back

False

Front

What should you do if your budget does not balance?

Back

any of these

Front

Goals you wish to achieve in the next two to five years are

Back

medium-term (intermediate) goals

Front

Which of the following would not be included in a person’s listing of ASSETS? Options: $13,000 car loan, $5,000 dinette set, $300 cash on hand, $1,000 in savings account

Back

$13,000 car loan

Front

With every buying decision, there is a tradeoff and an opportunity cost.

Back

True